XRP Price Eyes $3 After Flipping USDT To Become Third Largest Crypto Token

XRP has seen an impressive rise recently, resulting in the altcoin flipping USDT to claim the title of the third biggest cryptocurrency in the world. With the altcoin’s market cap hitting $154 billion, XRP is now at half the valuation of Ethereum.

However, despite the bullish sentiment, the uptrend lacks sufficient strength, and the altcoin is now approaching overbought conditions. If the momentum picks up, XRP could repeat the strong price action seen back in 2024.

XRP Market Cues Are Yet To Gain Strength

XRP’s relative strength index (RSI) is currently sitting at 69.23, just below the critical 70.0 threshold that signals overbought conditions. Historically, when assets enter the overbought zone, a reversal in price is often seen as momentum wanes. However, in November 2024, XRP defied the typical pattern by continuing its bullish rally despite reaching similar overbought conditions.

This sets up a scenario where XRP could repeat history if the momentum continues to build. The price did not experience a reversal in November 2024, instead rallying sharply despite reaching overbought territory.

XRP RSI. Source:  TradingView

For XRP to repeat its 2024 performance, the current bullish trend must gather more strength. The average directional index (ADX) is currently sitting just below the 25.0 threshold, which is critical for confirming the strength of an uptrend. If XRP’s ADX crosses this threshold, it would signal that the bullish momentum is gaining strength and could sustain the current rally.

In the past, when XRP experienced a similar situation in November 2024, the ADX also showed that momentum was increasing. This strength allowed XRP to break through resistance and push higher, even when the asset was deemed overbought. Therefore, the ADX could play a key role in determining whether XRP can repeat its previous success.

XRP ADX. Source:  TradingView

XRP Price Can Make It To $3

XRP is currently trading at $2.58, having risen by 21% over the past week. The altcoin managed to breach the $2.56 resistance level but has yet to secure it as support. If this level holds, XRP could continue its uptrend.

With $3.00 now within reach, XRP is aiming to break the next barrier at $2.95. If XRP manages to breach this level, a push toward the $3.00 mark is possible, repeating the history of strong price movements seen earlier. However, without sufficient strength in the uptrend, XRP could fall back into overbought conditions, resulting in a price reversal.

XRP Price Analysis. Source:  TradingView

In the event of a downturn, XRP could face a decline below $2.56, leading to a potential drop to $2.27. If this occurs, it would invalidate the current bullish thesis, signaling a potential end to the rally. The market’s ability to maintain strength in the near term will be crucial in determining XRP’s price trajectory.